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Soybean Update

posted Feb 11, 2011, 8:03 PM by NAVYUG Info
Soymeal has taken a beating in the past couple of weeks. Selling pressure was created on expectation of shrink in demand for soybean and its derivatives at current higher levels. Indian market moved in line with weak overseas market. Improvement in weather condition in Argentina and slow down in Chinese buying during the week had a bearish impact on world oil and oilseeds market. 

World traders were cautious during the week anticipating further decline in Chinese buying in the short term as the country was in holiday for a week on eve of Spring Festival. Beneficial rainfall was seen across soybean growing areas of Argentina easing the concern of yield loss. 

One important factor that impacted Indian market was identification of harmful pest in soy meal consignment sent to Vietnam. This had a bearish impact on the Indian soy meal prices. Vietnam is the second largest soy meal export destination for India after Japan. 

Bearish trend in soybean market is likely to be continued in the week ahead. We are expecting further selling pressure on expectation of poor demand for the produce. Physical traders and crushers are likely to slow down their purchases on speculation that soy meal demand might shrink at current higher levels. Most of the crushers have stocked enough beans to meet their immediate crushing requirement.